There is considerable debate on whether the employment and earnings prospects are better for those on low pay or for the unemployed. We use Understanding Society data for England and estimate dynamic random effects panel models which show robust evidence that the future unemployment risk is...

Finding a new job is not the only problem the unemployed face. How to manage the loss of income, status and identity can also be a serious consideration for those in between jobs. In-depth qualitative interviews reveal that family, friends and wider networks are important mainstays in helping...

In this paper we develop and quantitatively assess a tractable equilibrium search model of the labour market to analyse the long-term wage costs of a job loss. In our framework, these costs occur due to losses in workers' human capital and firm specific compensation, interruptions to workers'...

We investigate the reaction of couples to a job loss during periods of growth and recession in the UK focussing on re-employment of the spouse who lost their job. Re-employment was faster for those with a partner in work, but was not generally affected by other measures of the partner’s labour...

In this paper we study the separate effects of unemployment and job displace- ment on fertility in a sample of white collar women in Austria. Using an instru- mental variables approach we show that unemployment incidence as such has no negative effect on fertility decisions, but the very fact of...

This paper addresses two issues of great importance in the current economic climate. First, it analyses the extent to which unemployment experiences have a scarring effect on British men during the Great Recession. Second, it provides an insight into the relation between true state dependence...

This paper provides an integrated interpretation of qualitative and quantitative data examining how couples respond when one partner loses their job. According to economic theory there may be an 'Added Worker Effect' where, when one partner loses their job, their spouse enters the labour market...

Social interactions have important consequences for labour market outcomes. Yet the growing literature has relied on indirect definitions of networks. We present the first evidence based on direct information on friends' networks. We address issues of correlated effects with instrumental...

This paper identifies a data-consistent, equilibrium model of unemployment, wage dispersion, quit turnover and firm growth dynamics. In a separating equilibrium, more productive firms signal their type by paying strictly higher wages in every state of the market. Workers optimally quit to firms...

We build an analytically and computationally tractable stochastic equilibrium model of unemployment in heterogeneous labor markets. Facing search frictions within markets and reallocation frictions between markets, workers endogenously separate from employment and endogenously reallocate between...